Institute of Value and Administration Accountants of Pakistan has stated that Pakistan’s renewable vitality sector and huge mineral assets may play a serious position in reworking the nation’s capital markets by attracting funding and decreasing reliance on exterior debt.
In line with analysis revealed in ICMA’s Chartered Administration Accountant Journal, Pakistan can create a stronger and extra investment-driven monetary system by changing vitality and mineral property into structured monetary merchandise comparable to inexperienced bonds, infrastructure REITs, inexperienced sukuk, and mineral-linked securities.
The report acknowledged that Pakistan’s capital markets have entered a brand new part following the institution of the Capital Market Growth Fund underneath the Securities and Change Fee of Pakistan. The fund goals to extend investor participation and strengthen monetary markets with help from main capital market establishments.
The research highlighted the fast progress of Pakistan’s photo voltaic vitality sector, noting that the nation has imported greater than 51 gigawatts of photo voltaic capability since 2018, together with almost 17 gigawatts in 2024 alone. Put in photo voltaic capability is presently estimated between 32 and 34 gigawatts.
In line with the report, the rising use of photo voltaic vitality has already helped Pakistan save greater than $12 billion in oil and LNG imports between 2021 and early 2026, with additional financial savings anticipated this yr. Researchers stated these renewable vitality tasks can generate secure money flows which may be was funding merchandise for native and worldwide traders.
The report additionally pointed to Pakistan’s big mineral reserves, together with round 6 billion tons of copper ore, 1.5 billion tons of iron ore, and main gold deposits. Nonetheless, regardless of these assets, the mining sector presently contributes solely about 3 p.c to the nation’s GDP.
ICMA really helpful introducing commodity-linked securities, mining funding trusts, and exchange-traded mineral merchandise to assist flip pure assets into investable property. The report stated international locations comparable to Chile and Australia have efficiently used resource-based financing techniques to strengthen their capital markets and entice institutional traders.
The research additional famous that retail participation in Pakistan’s capital markets stays very low, with market penetration under one p.c of the inhabitants. It stated increasing digital funding platforms, enhancing monetary literacy, and providing asset-backed funding merchandise may assist entice extra traders and construct public confidence.
Researchers added that Pakistan’s cell community, with over 190 million connections, gives a powerful base for digital funding companies and fractional possession fashions.
The report concluded that linking renewable vitality and mineral wealth with modern monetary devices may assist Pakistan shift from debt-based financing in the direction of an asset-backed funding mannequin, supporting sustainable financial progress and attracting world ESG-focused funding.
